KEY POINTS:
The stand-off between Microsoft and Yahoo over the technology giant's US$42 billion ($52.76 billion) takeover offer for the internet pioneer appeared to get personal, as Jerry Yang, Yahoo's chief executive, again rejected the bid, saying it undervalued the company.
Yang delivered his response yesterday to Steve Ballmer, Microsoft's chief executive, who had given Yahoo a three-week deadline to agree to the cash-and-shares deal or face a battle to wrest control of the board at the annual shareholder meeting.
Yang said Yahoo had never refused to talk to Microsoft, that Ballmer's open letter "mischaracterised" the contacts between the two companies, and that it was Ballmer himself who was being intransigent.
"We have had constructive conversations together regarding a variety of topics, including integration and regulatory issues," Yang said.
"Your comment that we have refused to enter into negotiations to conclude an agreement are particularly curious given we have already rejected your initial proposal ... Steve, you personally attended two of these meetings and could have advanced discussions in any way you saw fit."
Yahoo says it is not opposed to a transaction with Microsoft if it is in the best interests of shareholders. Those who have spoken publicly have said they hoped Microsoft would increase its offer.
Yahoo is searching for an alternative deal. Meanwhile, Yang's go-it-alone strategy, presented last month, failed to excite the share price.
With the US economy slowing down, there are also fears that Yahoo's advertising revenue could be weaker than promised.
- Independent
